KJC Korea
Journal Central

This study provides an empirical analysis of the US-China trade war impacts on its stock markets. Using 20 years of daily return series of S&P 500 and SSE Composite Indices from 2000 and 2019, we investigate volatility clustering, asymmetric volatility under EGARCH and TGARCH models that effectively captures the time-varying volatility in the pre- and the post-trade war eras. We found the following results. First, volatility clustering is significant during the pre-trade war period for both the US and Chinese stock markets. However, the level of clustering was increased in the US and decreased in China during the post-trade war period, implying that the US stock market responded more sensitive relative to Chinese stock market. Second, the volatility persistence in US was decreased while it was increased in China during the US-China trade war period. The results suggest that US Federal Reserve’s active stabilization policies help quickly absorb the trade war shock. Third, the presence of asymmetric volatility in the pre-trade war period was identified both in the US and Chinese stock markets. However, the degree of asymmetry in China is lower than that of US. More importantly, in China, asymmetric volatility is not significant in the post-trade war period, suggesting the insensitive responses of Chinese investors to debt ratio and risk premium increase during the market turmoil. Finally, the possibility of adverse asymmetric volatility in Chinese stock market is discovered during the trade war period, suggesting that Chinese investors respond more sensitively to good news than bad news. Overall, the government’s active engagement seems to be effective for market stabilization during the market turbulence in US. In addition, we found the possibility of speculative investment increase in China because of adverse asymmetric volatility in Chinese stock market.

This study investigates how the political and economic orders in Southeast Asia have changed due to the escalating U.S.–China tensions and what diplomatic strategies middle ground states have adapted to deal with these great powers by comparing Vietnam, Myanmar, and the Philippines. Before the U.S.–China conflict, Vietnam demonstrated a neutrality strategy between the two, Myanmar maintained a bandwagoning strategy with China, and the Philippines followed a balancing strategy against China. However, the three countries are now pursuing hedging strategies against the rising great power of China in order to secure their own national security and economic interests in the face of rivalry between great powers. These changes in diplomatic strategies are influenced by the geopolitical positions, historical memories, and political and economic systems of each of these countries.

This study examined what the concept of “convergence of industry and city” means and under what background the concept was developed as the concept has recently emerged in China and has entered the stage of practical policy promotion. Furthermore, the Suzhou Industrial Park was selected as a representative example of industry-city convergence, and the process of its growth and development was analyzed more in-depth. On reviewing the reason why Suzhou Industrial Park was able to show considerable outcomes in industry-city convergence, first, the fact that a foundation for long-term industry-city convergence was prepared by planning appropriate levels of residential and commercial lands in advance bearing the preparartion of all the comprehensive functions required by the city in mind can be cited. In addition, in the process of growth and development, basic facilities and services were expanded to neighboring townships and villages while securing the lands necessary for the sustainable growth and development of the park by including the neighboring township and village areas in the area of development of the park and developing the areas one by one. This study examined the formation of neighborhood centers as the most characteristic method introduced in the process through which Suzhou Industrial Park practiced industry-city convergence. A common problem of other development zones in China is that various service facilities in the complexes were inadequate and greatly depended on the on the original city center for the relevant functions thereby causing a serious phenomenon of seperation of employment from home. The neighborhood centers greatly reduced the dependence on the city center by integrating various service functions for which development zones in China had been heavily relying on original city centers, into the complexes. These neighborhood centers helped Suzhou Industrial Park implement an independent and organic shape of the city.

Japan commenced the Arctic activities by joining IASC which was the first Arctic activity of Asian Countries, and has expanded the interest areas by conducing international project for NSR in 1990s and 2000s. And, ‘Headquarter for Ocean Policy at the Prime Minister’s Office’ for managing the Japan’s Ocean and Polar Policy was founded in 2007 and Japan got the ad-hoc observer state in 2009 and finally joined the observer group of Arctic Council in 2013. as an after-action of joining, the headquarter formally released the Japan’s Arctic Policy in 2015 that was the first Arctic policy of the Japanese government. Japan’s Government consisted of 3-axis of policy, that is △Research and Development (R&D), △International Collaboration. △Sustainable Development. Regarding the R&D of Arctic Policy, MEXT organized the Arctic Climate Change Research Project (2011-2016) under GRENE programme. and as a second stage, MEXT initiated the interdisciplinary programme named “Arctic Challenge for Sustainability (ArCS I 2015-2019 leading by NIPR, JAMSTEC, Hokkaido Univ.)’ in 2015 which was finished successively in 2019. MEXT had hosted the breakout session at Arctic Circle Assembly for sharing the accomplishments of the ArCS I. with international communities from 2016 to 2019. In 2020 MEXT, on the third stage, launched ArCS II programme which takes more multidisciplinary approach than ArCS I and more domestic research institutions (i.e. Univ., Institute) apart from 3 main institutions joined as the managing institutes of each sub-project. This study conducted the comparative study on GRENE (Arctic Climate Change Research Project), ArCS I, and ArCS II in terms of research themes and the contents of sub projects, portion of Arctic Social science and its role and relations on A rctic natural science, etc. And the study reviewed the implications based on the outcomes of analysis and research and suggested the directions for the development of Korea’s Arctic interdisciplinary programme collaborating Arctic Social Science, Natural Science and Engineering for addressing Arctic Issue and contributing to Policy-Decision.

This paper examines cross-cultural experiences of Italian professionals living in Korea and working for Korean organizations. Aimed at understanding whether cultural differences between Koreans and Italians can be found and how these influence the experience of Italian expats, it analyzes the dimensions of Decision-making Process, Leadership Style, and Team Environment in an organizational context. Considering the increasing number of Italians living in Korea and the highly relevant trade partnership between Italy and Korea, this research wants to fill in the current gap in the cross-cultural management literature between such countries and individuals. By using the Analytic Hierarchy Process (AHP), which transforms intangible judgments into consistent and tangible data, responses from the surveyed experts were ranked to see which criteria and sub-criteria are more important to Italian expats. After comparing the current literature and the results obtained from the AHP analysis, similarities in the studied dimensions were found. In particular, Italians have shown similar collectivistic and hierarchical values to Koreans at work. Nevertheless, an important variance in communication style has been discovered and linked to the average-low satisfaction levels among Italian expats. From a practical point of view, by depicting such similarities and differences, this paper wants to help both Italians and Koreans at better understanding each other and, therefore, at maximizing the outcomes of their businesses. Moreover, it wants to be a foundation for further research on cross-cultural management between Italians and Koreans.

This paper examines the ways in which economic nationalism shaped the policy-making of the Korean developmental state by focusing on the development of Korea’s automobile industry under the Park Chung Hee regime. Underscoring such nationalistic goals as an “independent” and “self-reliant” economy, the Park regime strongly pushed export-first policies and the nurturing of internationally competitive “national champions.” In policy-making on the automobile industry, the Park regime’s nationalistic policy orientation was reflected in the implementation of the 1973 Long-Term Plan for the Promotion of the Automobile Industry, which stipulated the manufacturing of Korea’s first original “people’s car” model under national ownership. Furthermore, the influence of economic nationalism was substantial in the state’s policy-making, championed by top policy-makers in both the Ministry of Commerce and Industry and the Presidential Secretariat. This paper also argues that Korea’s economic nationalism can be considered a “defensive economic nationalism,” which sought “power-as-autonomy” while embracing an “elite-oriented” approach with a focus on the promotion of wealth in an aggregate national sense.

This study explores the concept and international landscape of science and technology ODA. In order for theoretical research of science and technology ODA, the process of its conceptual establishment in historical context and global landscape based on quantitative date should be analyzed. The results of this study are summarized in the following two. First, Technical Assistance(TA), which emerged for political purposes since the 1950s, triggered international aid activities and expanded its appearance to the extent that it would be used as synonyms for ODA. Then as functional aspect of science and technology have been emphasized in development cooperation, it has changed to a new concept of science and technology ODA by adapting to international aid norms. Thus it is necessary to understand the flow and interrelationship of Technical Assistance, ODA, and science and technology ODA. The modern science and technology ODA emphasizes the expertise of science and technology as it was intended in the early stages of TA, but the political bias of TA is excluded. Second, the national science and technology ODA revealed the differences from the overall ODA. DAC countries show different patterns for the overall ODA and science and technology ODA, and it identified countries that were relatively focused on science and technology ODA. Australia, Canada, Korea, Iceland, Belgium, Luxembourg, Britain, and France were found to have relatively high levels of science and technology ODA support. Considering the international political meaning of aid, the top donor countries of science and technology ODA seem to be strategically carrying out science and technology ODA, which is increasing the explanatory power of countries’ aid actions in the existing aid discussions.

This study newly defines the size ratio of private placement equity funds mainly invested by institutions (corporations) compared to public offering equity funds mainly invested by individuals, and analyzes the relationship with stock market returns. The size ratio of the private placement equity fund to the public offering is divided into the size ratios of the domestic fund and the international fund. I examine whether there is a significant relationship between the rate of change in the size ratio and the difference in the domestic and international stock markets returns in the past, present, and future. As a result of the analysis, when the past and current domestic stock market returns are higher than those of MSCI (Morgan Stanley Capital International) ACWI (All Country World Index) and MSCI World, private placement equity funds currently have a higher ratio of domestic funds and a lower ratio of international funds. As a result of analyzing whether the rate of change in the past size ratio could predict the difference in future returns, there is a positively significant relationship between the rate of change in the domestic fund size ratio and the difference in the future returns and a negatively significant relationship with the rate of change in the international fund size ratio. This study contributes to confirming that the rate of change in the past size ratio of private placement equity funds can give information on future stock market returns.